AuthorTopic: Economics IS Curve
montaqes
@2015-04-15 06:17:28		 Hi All,

I need help with the change of equilibrium income when government spending increases.

Gov. spending increases from $1,500 to $2,000. Find the IS Curve. Does the increase in gov. spending result in an ewual increase in equilibrium income for any given level of the real interest rate? Why or Why not?

Previously Y=12,292.7 - 73.2r

after the increase in Gov spending Y=13,512.2 - 73.2r

I am also stuck with this question. it seems to be not correct in currilicilum. think that 12.292.7+500=12792.7 is the right answer not the 13512.2.

why increase in 500 in G increases Y by 1219.5.

if I am right or wrong please write here?

Thanks

CFA Discussion Topic: Economics IS Curve

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I used your notes and passed ... highly recommended!
Lauren

Lauren